Individual investors account for 55% of Banco Latinoamericano de Comercio Exterior, S. A.'s (NYSE:BLX) ownership, while institutions account for 38%
Key Insights
The considerable ownership by individual investors in Banco Latinoamericano de Comercio Exterior S. A indicates that they collectively have a greater say in management and business strategy
A total of 25 investors have a majority stake in the company with 42% ownership
Institutions own 38% of Banco Latinoamericano de Comercio Exterior S. A
A look at the shareholders of Banco Latinoamericano de Comercio Exterior, S. A. (NYSE:BLX) can tell us which group is most powerful. The group holding the most number of shares in the company, around 55% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And institutions on the other hand have a 38% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Banco Latinoamericano de Comercio Exterior S. A, beginning with the chart below.
View our latest analysis for Banco Latinoamericano de Comercio Exterior S. A
What Does The Institutional Ownership Tell Us About Banco Latinoamericano de Comercio Exterior S. A?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Banco Latinoamericano de Comercio Exterior S. A already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Banco Latinoamericano de Comercio Exterior S. A's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Banco Latinoamericano de Comercio Exterior S. A. Our data shows that Brandes Investment Partners, LP is the largest shareholder with 13% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 3.7% and 3.0%, of the shares outstanding, respectively.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Banco Latinoamericano de Comercio Exterior S. A
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own some shares in Banco Latinoamericano de Comercio Exterior, S. A.. In their own names, insiders own US$19m worth of stock in the US$831m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 55% of Banco Latinoamericano de Comercio Exterior S. A shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Banco Latinoamericano de Comercio Exterior S. A has 1 warning sign we think you should be aware of.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
